Re: The Dinar Daily, Saturday May 9, 2015

The Exchange Rate of Foreign Currency in Economic Feasibility Studies

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

Estimate the shadow price of foreign currency:

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:

Export-outputs.

Outputs marketed locally that substitute imports.

Imported inputs.

Inputs produced locally that usually go to exports.

Foreign labor.

According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc.

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

The Republic of Iraq – Ministry of Planning

and

A "flashback recap" of a Live Q and A Call from about a year ago - on THE DAILY DINAR NEWS BLOG...

In general terms – there were three main focal points of interest I wanted to cover and then allow listeners to ask whatever questions they liked.
1) the SIGR report…
2) the Gold Article…
3) the IIER report…
I started the conversation out last night by highlighting how crazy this campaign being fielded to contact our lawmakers and bank CEO’s and tell them how unfair it is they are getting to exchange (exchange is the right terminology BTW – NOT “CASH-IN”) at 32.00 per Dinar and we are not – is. It is nuts.
Firstly, “they” are NOT being allowed to exchange “early” – or at 32.00 per Dinar. It makes you sound “stark raving MAD” to be caught saying such things. You would be better off barking at the moon. It is demeaning to the validity of a true currency play.
Secondly, this is entirely the wrong way to approach them. I pointed out on the call that Poppy and I fielded a very successful such campaign a couple of years ago. However, we sat down and came up with a much different approach. It was designed to get answers and to approach our lawmakers with respect and as their constituents. Not like a bunch of lunatics. We had extraordinary participation (because it made sense) and we received a good response from lawmakers. It started the conversation in a reasonable manner.
I asked one caller – “when was the last time you asked a banker for money and told him how unfair it was if he didn’t give it to you”??? Obviously – we chuckled…
Another caller asked me if (as DC had relayed) – the “zero’s were raised” and the lower denominations were in circulation??
I said plainly “no”…lower denominations being in circulation would (at the very least) imply there had been a value change. If there were no value change the lower denoms would not only be of little value, they would be such a hinderance – people might even throw them away just to get rid of them. So no – no lower denoms. I told the caller to check the CBI.iq website for “real” info on rate change.
The “zero’s being raised” or “deleted” – as explained by any reasonable researcher, economist or authority – is simply the process removing the large (3 zero notes) from circulation.
Referring to an Enorrste post from today onTHE DINAR OBSERVER DAILY(you may want to put this on your favorites and check in several times a day – we to it often )
“…I have never found a single article from the CBI or the IMF that equates “delete the zeros to the idea of “move the decimal point.” Instead, the statements overwhelmingly come out to mean “remove the large notes from circulation.”…
Also – this recent internal memo put out by Wells Fargo is likely “push back” from this recent campaign. I pointed out that Pinnacle Bank published an article by an “affiliate” in their internal publication and then “highlighted it” in a similar internal memo a couple of years ago. It is just a defense mechanism. I’m sure Wells is tired of having their name dragged through the “internet rumor mill”. This is highly likely the reason for their vigorous denials about handling it in the future. They get so many useless calls – it isn’t worth the headache. Can you blame them??
Further, for any bank, lawmaker, adviser or official to state the “Dinar is a scam” is nearly as foolish as some of the internet “Gurus”. It is the official currency of a COUNTRY. I pointed out (below) the post from yesterday’s DINAR OBSERVER DAILY – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
__________________________________________________ _____________

THIS REPORT WAS SENT TO CONGRESS LAST MAY. IT PLAINLY SHOWS IN THIS REPORT THEY EXPECTED THE DINAR TO REVALUE AT AROUND A DOLLAR IN 2013.

We are seeing and hearing that the inflation rate is still climbing and they are pushing to get us our money?? This report is from page 84 of the massive SIGR report.

BGG ~This is a screen shot from the “Special Inspector General for Iraq Reconstruction” – Apr 2012, quarterly report to Congress. For members of our Government to say they have no idea what is going on here – means they haven’t read some very basic documents presented them.
__________________________________________________ ______________

I pointed out (last night) this is a highly speculative investment. We are, in no way, guaranteed anything. However, this SIGR report gives us some valuable insights…

1) This is information given to the US CONGRESS on a quarterly basis… I find it hard to believe such an information source would intentionally mislead Congress. They tend to frown on such behavior. Which goes directly to the validity of this adventure – against all advice from Wells Fargo or other such naysayers.

2) It points out there having been a legitimate “plan” – or time frame in motion…having been projected to be done in 2013. We are obviously in “over time” now.

3) It gives us an idea as to who is in charge…the CoM – or Council of Ministers. Who do they answer to?? Maliki. Period. When is he likely to push this forward?? Historically – he has been a “weak Dinar” policy advocate. However, rumor from his own inner circle admits he can’t win a third term in office without some currency reform.

I fully expect him to use every tool in his “wheel house” to win – his recent moves in Anbar and the disputed territories prove as much. Currency reform has to be a “biggie”. Though this WAS their thinking a couple of months ago – there is no promise it is still part of their political calculus. We shall see.

4) Though no guarantee of the actual future plan they wind up engaging – this report points out an increase in value that would have taken the Dinar from “one-tenth of a cent” to a value “of slightly less than $1″..

__________________________________________________ ______________

AND

Coins put on the market !!

Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

She said in her statement Albjara "The project will take between four and five years, and which will be the launch of the categories of small coins gradually."

He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

The economic expert on behalf of Jamil Anton, noted that he may not find metal coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century

waradana.com

And

CBI is preparing to issue a monetary metal parts

Metal coins from the category of 25 fils were in circulation until the nineties of the last century

Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

She said in her statement Albjara Radio Free Iraq, "said the project will take between four and five years, and which will be the launch of the categories of small coins gradually."

He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

The economic expert on behalf of Jamil Anton, noted that he may not find coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century.

The Central Bank of Iraq (CBI) has been attempting to delete three zeros from the Iraqi currency since 2003. This project has raised many concerns among the Iraqi public and within the business community, and Iraqi economists are divided…

…Haider al-Abadi, the head of the Iraqi parliamentary Finance Committee, told Al-Monitor that while deleting zeros from the current currency is possible, this has been postponed until after parliamentary elections. He noted that studies are being carried out to ensure that, following the currency change, counterfeiting is limited and that Iraqis don’t go back to trading in the old currency.
The step to delete zeros from the currency has been postponed several times, leading the parliamentary Economic Committee to demand that the CBI accelerate this project, as Al-Sharqiya reported. In a news conference held July 6, the Economic Committee confirmed that the deletion of zeros will lead to an increase in the value of the Iraqi dinar and will have positive repercussions, including a reduction in unemployment and poverty rates in the country.

KUWAIT CITY, Kuwait — Thousands of Kuwaitis are expected to jam the country's banks today when they open for the first time since the end of the Iraqi occupation.

Customers will be allowed to withdraw funds and to swap pre-invasion money for a new currency issued to make more than $1 billion in pre-invasion dinars stolen by the Iraqis worthless.

"We expect a rush of people," said Issam Asousi, an executive with the Bank of Kuwait. He said it could be a chaotic first week because customers have a lot of questions about their accounts.

Kuwaiti banks continued operating during the seven-month Iraqi occupation under managers brought in from Iraq, but they have been closed since the U.S.-led alliance ousted the Iraqi army from Kuwait a month ago.

When the banks reopen today, customers will be able to withdraw up to 4,000 Kuwaiti dinars, equivalent to about $14,000 at pre-invasion exchange rates from their accounts, and to exchange a like amount for foreign currency.

Balances of customers' accounts will go back to what they were on Aug. 1, a day before the invasion.

Clients will not be able to exchange Iraqi currency issued during the occupation, when Baghdad pegged the rates of the strong Kuwaiti dinar to the far less valuable Iraqi dinar.

Just thought I would drop you an email. I listened to the call, and was interested in what was said about Kuwait, if I may - I will add my 2 cents worth.

You were spot on with what you said, I have a close friend who's father made a killing on the KWD. He bought from people who had fled the country and he paid pennies on the dollar (we are in Australia). He took the chance that Iraq would be kicked back out and he was right.

When the money was reinstated, he exchanged it for AUD at a rate in the mid 3s. The interesting thing about it is, Iraq invaded in November 1990 (I think), they were kicked back out at the end of Feb 1991, the banks reopened with a brand new KWD in late March, that's not a bad time frame to get a currency designed, printed and made ready to use, also the time that the old KWD was valid was initially only for 2 months, then extended to 6, so it was valid until Sept 1991, interesting I think.

Also the other thing that seems to be a "fact" in Dinar land is Bill Clinton used the Kuwait RV to pay off the debt. However, Clinton was not President in 91, he did not take office until 93, even I know that and I am an Aussie.

Re: The Dinar Daily, Saturday May 9, 2015

Tuz administration declares open the road to Baghdad - Arbil within 10 days and demanding of the three presidencies to "interference"

Long-Presse / Kirkuk Announced manage spend Tuz Khurmatu in Salahuddin province, on Saturday, they received promises to open the road to Baghdad - Kirkuk President within 10 days after the protest of its citizens on a piece during the past three months, and confirmed that the judiciary did not receive financial dues from Baghdad, although presented more than 8,000 dead and wounded , and with the three presidencies called on to intervene and pay the dues of the judiciary, warned of the continuation of this situation will open the field of terrorism, fomenting strife between Tuz components.

Said Mayor spend tooz district waterfall Abdul in an interview with the (long-Presse), he said that "the road to Baghdad through Balkhals even the outskirts of Sulaiman Bek hand is still cut off for more than three months, which worsened the economic situation and the payment of laboratories, restaurants and shops of the people of the judiciary owners to protest, Thursday , in front of the gate the judiciary not to allow for travelers and cargo loaded with fuel and food to pass through the road passing through the second Holi Diyala and Khanaqin and Kalar. "

He explained Abdoul, "we were able to open the Tuz gate, on Friday, after understanding and taking the promises of the popular crowd of Turkmenistan to open the road to Baghdad Kirkuk during the next ten days, and which was closed because of security operations", noting that "Tuz did not happen of its budget Dinara one and stopped business operational CLEANING Since the five-day service projects and there correspondence, relationships and communication with the local administration for salads interruption. "

He asked Mayor tooz district "Why amounts Batch and workers' wages and salaries up to Mosul, but the people of Tuz who resisted (Daash) for four months and did not their city fall and people Amerli who were trapped for 81 days and we have since 2003, and so far three thousand dead and five thousand wounded not acted us our money ".

He called Abdul the three presidencies to "half the people of Tuz Vmcharaana stopped the agricultural harvest season began and peasants did not receive their dues for last year and the elimination of seven thousand displaced families received without the presence of any government or international support," pointing out that "the lack of insurance sums leads to find the tensions do not serve live joint and opens room for terrorism to tamper with and sedition among the components. "

The management spend Tuz Khurmatu in Salahuddin province demanded, in the April 16, 2015, the central government to reopen the Kirkuk -bgdad way, and confirmed that the reason for closing "total paralysis" economic movement, as pointed out that the opening will provide thousands of jobs.

The dozens of residents of Tuz Khurmatu spend in Salahuddin province, demonstrated, on Sunday, (April 5, 2015), to demand the opening of the road to Baghdad - Kirkuk, which had been shut since the start of the military to liberate the city of Tikrit operations, while an official source pointed out that the demands of the demonstrators will be submitted to officials for consideration.

The General Commander of the Armed Forces and Chairman of the Council of Ministers, Haider al-Abadi, announced last Tuesday, (the 31st of March 2015), the liberation of downtown Tikrit, Salah al-Din province, (170 km north of Baghdad), members of the organization (Daash), He stressed raise the Iraqi flag over the building of the province, while that between the security forces continuing the process of cleansing the universe (Daash) Fajkh buildings and houses, Tikrit confirmed that the "liberated with the blood of the Iraqis themselves."

Re: The Dinar Daily, Saturday May 9, 2015

Barzani: The results of our visit to Washington was more than we waiting

Long-Presse / Ariel , Stressed the President of the Kurdistan region, Massoud Barzani, on Saturday that the results of his visit to Washington and his meeting with US President Barack Obama "more than that awaits him," As confirmed receiving "assurances" not to delay in sending weapons to the Peshmerga forces, he stressed that his survival in office whether or not to return to political parties.

Said Massoud Barzani in a meeting with the media Kurdish and I followed (range Press), said that "our meeting and our meeting in Washington, the results were more than we have been waiting," stressing "to obtain a full assurances at the state level from the United States that the weapons will not reach the late Kurdistan, especially necessary, such as anti-tank ".

Barzani said, "We have noticed the presence of full understanding of the issue of the Kurdish people in general," adding that he "would agree to conform to any decision by the political parties and Parliament on survival in the post of President of the Kurdistan region or not."

The head of the Kurdistan region Massoud Barzani visited, on Saturday (2 May 2015), the United States.

The head of the Kurdistan region of Iraq, Massoud Barzani, confirmed Wednesday (6 May 2015), that the Iraqis conviction to "Unit voluntary and not mandatory", and as pointed out that the fate of the Kurdish people report must be in a peaceful manner, he stressed that the State of Kurdistan to come.

The officials in the Kurdistan Regional Government, Sunday (3 May 2015), that the province head Massoud Barzani, who is visiting the United States holds important files to Washington, and with Benoit he would discuss openly with US President Barack Obama, the future of Kurdistan after the completion of the organization (Daash) right self-determination, drew to change US policy toward the establishment of the State of Kurdistan, especially after Alپeshmrگh war against gangs (Daash).

The Kurdistan Democratic Party and the Patriotic Union of Kurdistan has lifted from the list of terrorist organizations that have been developed in the era of the former regime before the visit, and this was a condition Barzani to visit the United States, while The visit is the fourth of the President of the Kurdistan region Massoud Barzani to Washington.

Re: The Dinar Daily, Saturday May 9, 2015

Babylon demanding the Council of Ministers to speed up the issuance of Order-term contracting mechanisms and cancel projects worth 560 billion dinars

Long-Presse / Babylon Student Babil province Council, on Saturday, the Council of Ministers to expedite the issuance of the contract in a way payment on credit mechanisms, and pointed out that "delete" a series of projects valued at more than 560 billion dinars to complete the project streams of Hilla, the Great, as he emphasized that the economic situation with the country's It influenced the reconstruction and construction projects in the province.

The Committee ages in the provincial council head Ahmed Ahlgrebawi in an interview to the (long-Presse), said that "the province of Babylon Council demanded the Prime Minister to expedite the issuance of the special contract and mechanisms of exchange and instructions attached to the implementation of the budget for 2015, which provided for the construction work in a manner on credit mechanisms".

Ahlgrebawi He added that "government austerity crisis affected the construction, projects and ages in a movement in the province led to the suspension of dozens of them," pointing out that "the Council decided earlier adoption construction method Order forward."

Ahlgrebawi He continued that "the province of Babylon Council began the process of deleting a set of projects worth more than 560 billion dinars to complete the project streams Hilla great and implementation of the first phase of the streams and the Hashemite denominator and Midhtah", noting that "the doors of the province will be open to everyone and preference will be for global companies discreet. "

It is noteworthy that Iraq is facing a deepening financial crisis, as a result of the decline in world oil prices nearly 60 percent compared to last summer, and the repercussions of the war against (Daash).

The House of Representatives has passed in, (the 29th of January 2015), the current year's budget in the amount of 119 trillion dinars, the equivalent of $ 117 billion, and a deficit of around 25 trillion dinars, or nearly 23 billion dollars.

Re: The Dinar Daily, Saturday May 9, 2015

After five years on direct it ... Diwaniya is preparing for the opening of an investment complex

Long-Presse / Diwaniya The Governor of Diwaniyah civil Habib Ammar, on Saturday, the province's readiness for the opening of one of its investment projects after the completion took nearly five years, as called for Arab and foreign investors to invest in the province, he stressed that there is no alternative for the advancement of the economy of the province is investing.

Said Ammar Habib civil, in an interview with the (long-Presse), "The draft Tahir investment accomplished in spite of the obstacles that witnessed stages of implementation and construction due to the transactions and the red tape and problems of land acquisition, etc., will open in front of maintaining several outlets Arab and foreign investment companies."

He civil, that "a working meeting gathered today in several local companies and Arab and foreign businessmen, to inform them of the seriousness of the government of Diwaniya to facilitate the work of investors and the completion of their transactions, and we will invite more of them at the opening of (Mall Tahir), with the lunar month of Ramadan, inviting them to invest in shopping and money sectors and the economy, housing and other sectors to get the economy moving in the province. "

Civil and continued that "the security and stability witnessed in Diwaniyah, and its strategic location amid the heart of the Middle Euphrates and the road link between the southern, central and northern Iraq, in addition to the social fabric coherent will provide investors with real opportunities in the success of their projects and achieve a profit, will also provide employment opportunities for the people of the province."

He was executive director of the group Tahir Oman, Ghazi sweet, attributed the "reasons for the delay in the implementation of the project, which laid the foundation in 2010, back to the problem of ownership of the land belonging to the Ministry of Religious Endowments and the Ministry of Municipalities and after the demarcation of the border between them has been completed due process and we consequently approvals."

The investment of Diwaniyah body, announced (March 16, 2011), direct the construction of the first shopping mall amid the province at a cost of $ 21 million, includes shopping malls in several floors and restaurants and spaces vegetables and parking, "pointing out that" The Mall area of ​​approximately 20 dunams.

Re: The Dinar Daily, Saturday May 9, 2015

Breaking News Iraq will succeed in building its civil State, overcome its crises

Baghdad (Forat) –The head of the Supreme Iraqi Islamic Council, Ammar al-Hakim, confirmed said during the National Conference of Press Freedom on Saturday "Iraq will build its civil State and overcome its crises." /End/

Re: The Dinar Daily, Saturday May 9, 2015

BAGHDAD – Forty inmates in a prison in eastern Iraq, including some convicted of terrorism charges, have escaped amid a riot that killed at least six police officers and 30 prisoners, Iraq's Interior Ministry spokesman said Saturday.

There were conflicting casualty reports on the attack at the Khalis prison in Diyala province. Two provincial police officials and a medical official put the toll much higher, saying 51 inmates and 12 policemen were killed, while more than 200 inmates escaped. They spoke on condition of anonymity as they were not authorized to release the information.

Brig. Gen. Saad Maan Ibrahim, the Interior Ministry spokesman, told The Associated Press that a fight broke out first among the inmates of the prison and when guards went to investigate, they were overpowered and had their weapons taken. There are hundreds of inmates in the prison.

Some of those that escaped were wanted on terrorism charges, Ibrahim added. He said security forces were cordoning off the area, hunting for the escaped inmates.

The town of Khalis is located about 50 miles north of Baghdad.

Jailbreaks are common in Iraq and usually a result of assaults from militants seeking to free their comrades in prison. Ibrahim said, however, that there was no external attack that sparked the Khalis riot.

Dozens of people have died after a prison break in eastern Iraq, in which 40 inmates managed to escape, according to Iraq's Interior Ministry.
The ministry's spokesman said on Saturday that some inmates in Khalis prison fled after overpowering guards in an assault that killed six police officers and 30 prisoners.
Two provincial police officials and a medical official put the toll much higher, saying 51 inmates and 12 policemen were killed, while more than 200 inmates escaped. They spokesman spoke on condition of anonymity as they were not authorised to release the information.
Iraqi military official Brigadier General Saad Maan said a fight broke out among the inmates of the Khalis prison in Diyala province and when guards went to investigate, they were overpowered and had their weapons taken.
Maan said some of those that escaped were wanted on terrorism charges. Hundreds of people are detained in the prison.
The violence happened as a series of suicide attacks targeting Shia places of worship also in Diyala province killed at least 22 people.

Ahlul Bayt News Agency - The Commander of the Badr brigade has condemned attempts made to divide Iraq and declared that Iraq does not need US support to defeat [so-called] Islamic State (IS).

Commander Hadi al-Ameri said in an interview that the agreement between Nouri al-Maliki’s government and the US to purchase F16 warplanes and arms has already failed.

Al-Ameri said, “US support is not needed because we are able to defeat IS.”

Commenting on plans to arm Kurds and Sunni Arabs directly, al-Ameri said, “Aside from some politicians, no other Iraqi wishes to divide the country, and we will strongly oppose those who attempt to split Iraq.”

He insisted that Kurds and Sunnis do not want separation and said, “We must uphold the territorial integrity of Iraq.”